- Honeywell forecasts its adjusted earnings per share (EPS) for 2025 to be between $10.10 and $10.50, which falls short of the anticipated $10.94.
- The company expects organic sales growth of 2% to 5% for 2025, whereas the estimate was 6.22%.
- Total sales are projected to be between $39.6 billion and $40.6 billion, below the expected $41.24 billion.
- Free cash flow is estimated to range from $5.4 billion to $5.8 billion, lower than the predicted $6.22 billion.
- Fourth quarter adjusted EPS exceeded expectations, coming in at $2.47 compared to an estimated $2.33.
- Sales for the fourth quarter were $10.09 billion, above the expected $9.82 billion.
- Free cash flow for the fourth quarter was reported at $1.89 billion, exceeding the estimated $1.81 billion.
- Organic sales for the fourth quarter increased by 2%, outperforming the forecasted decline of 0.8%.
- Aerospace Technologies saw a 1% growth in organic sales, short of the 2.61% estimate.
- Building Automation reported an 8% rise in organic sales, significantly surpassing the 3.17% estimate.
- Energy and Sustainability Solutions grew by 1% in organic sales, below the 1.86% estimate (based on two estimates).
- Shares rose by 3.1% in pre-market trading, reaching $229.20 on a volume of 9,028 shares traded.
- Analyst recommendations for Honeywell include 13 buys, 12 holds, and 1 sell.
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Honeywell International on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Honeywell International‘s recent developments. In one report, Baptista Research discusses the potential benefits of Elliott Investment Management’s activist call for the aerospace split at Honeywell. With Elliott’s substantial stake in the company, the push for a separation of the aerospace business could unlock billions in value and lead to a strategic transformation. Honeywell’s board is actively considering this move, indicating a significant shift in the company’s portfolio.
Additionally, Baptista Research‘s analysis delves into Honeywell International‘s recent financial performance and strategic moves. Despite sales missing expectations, the company demonstrated strong operational execution in the third quarter of 2024, surpassing adjusted earnings per share targets. With key leadership changes and notable acquisitions, such as the LNG business of Air Products, Honeywell is reinforcing its focus on core areas like automation, aviation, and energy transition. Baptista Research is evaluating various factors impacting the company’s stock price and conducting an independent valuation using a Discounted Cash Flow (DCF) methodology.
A look at Honeywell International Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 2.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
When looking at the long-term outlook for Honeywell International, it appears to have a positive trajectory based on the Smartkarma Smart Scores. With a strong momentum score of 4, the company seems to be gaining significant traction in the market. This suggests that the company is performing well in terms of its stock performance and investor sentiment.
Additionally, Honeywell International shows promising growth potential with a score of 3 in both the growth and dividend categories. This indicates that the company is likely to see continued expansion and is committed to rewarding its shareholders. Although the value and resilience scores are slightly lower at 2, Honeywell International‘s overall outlook remains optimistic, reflecting its position as a diversified technology and manufacturing powerhouse in various industries.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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